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With big boost from sugar? cane, Brazil is satisfying its fuel needs Brazil is almost? self-sufficient in ethanol. Brazilian ethanol is made from sugar and costs 83cents per gallon whereas U.S.? ethanol, made from? corn, costs? $1.14 per gallon. The United States has set a zero quota on imports of? ethanol, so it does not import ethanol.
Draw the PPF for ethanol and other goods and services for the United States. Label it.
Draw the PPF for ethanol and other goods and services for Brazil. Label it.
The United States Brazil has the comparative advantage in producing ethanol. Choose the correct statement. A. Both Brazil and the United States could gain from specialization and trade because the United States would get ethanol at a lower price and Brazil would get other goods and services at a lower price. B. Only the United States would gain from this trade. C. Both Brazil and the United States could gain from specialization and trade because Brazil would get ethanol at a lower price and the United States would get other goods and services at a lower price. D. Only Brazil would gain from this trade.
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Along a short-run aggregate supply curve, a decrease in the price level means that
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